Do YOU have a ROBUST forex trading plan?

The Importance of a Forex Trading Plan

Why do you want to trade forex? I am sure you want to make money. You need to treat this like a real business.A successful business has a writting business plan.If you want to be a successful forex trader, you need to write out your very own forex trading plan.

Planning a specific set of rules for future events allows you to make better informed decisions.During extremely stressful market events, you can easily fall back on this material to help guide your decisions.Most aspiring currency traders believe the pros trade with no emotions.This is entirely false.

Each person endures emotions when making decisions, especially those which involve money.How you choose to deal with these decisions and which actions you take will be a major factor in your monthly profits or losses.

When you are not trading, you are not emotionally involved in trading. This is the ideal time to take a few moments and draw up your trading plan.Your mind is more objective when you are not emotionally distracted in a trade.I suggest taking 2 hours of your time and visiting a local coffee shop. Enjoy this simple process of finding out what you want as a forex trader.
You will soon find out the answers you come up with will help you make better decisions to any market situation you are faced with in the future.You can quickly check your ideas and rules to find out what you had planned for this specific event.These 2 hours spent at the coffe shop will reap big rewards in just a few months.

The currency markets are volatile and will always present challenges.This is a fact. If you can not deal with this, you should avoid trading forex altogether.You can identify some of these challenges with the list of questions which follow.

How do I define my trading edge?Do I believe in my specific trade setups?Which currency pairs do I want to trade?What types of entry orders will I use to place trades?Where will I put my stop loss? Will I use my strategy in multiple time frames or just one time frame?What is my initial profit target?How much am I willing to lose per trade?How much am I willing to lose per day? week? month? What is the maximum drawdown percent I'm willing to withstand?How many trades do I want to take per day? week? month?

Your answers to these questions form the basis for your forex trading plan.Write these out in a simple manner.Your objective is to have one of your friends completely understand these and if they had to step in and manage your trades, they could do so by following what you wrote down.

You will be much better prepared to manage your trading as a business with this approach.You will no longer react because you have a plan in place.Most beginning forex traders search for the holy grail trading system. But they fail to realize implementing a trading plan around a simple forex trading system is one of the keys to success.

If your trading plan is flawed, you will lose money. But if your trading plan is well-defined and you still lose money, you need to find a new trading strategy.

Take a few moments and build your own list of questions. Find a simple and profitable forex trading strategy. Learn how it works and then write your forex trading plan to fit your style of trading.

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Currency Trading Reviews of Online FX Brokers

If you have decided to invest in forex currency trading, you have a responsibility to yourself to do the required due diligence about this risky business. One critical thing you need to do is to update yourself with the latest currency trading reviews. When you surf the internet, you will be amazed at the number of websites doing forums, seminars and reviews. When it comes to currency trading reviews, you must spend time to compare and study available reviews and comments.

There is lot of discernment to be done in scanning these reviews. Basically, it is important to look into the reviews of online Fx brokers who are active in the business. How about the category of education reviews being offered out there by forex gurus?

Under this topic, you can learn lots of things from the reviews made about self-study courses in general. There are also negative and positive reviews you will encounter about 1 on 1 training, seminars, books, magazines, blogs, live training, etc being offered online together with their freebies.

With respect to the tools category, you will find lots of reviews about charts, software, news, calendar, reference and hardware. Now, the systems category is fascinating. It is broken down to automated and non-automated system. About the automation, you will be curious about lots of robots doing the trading for the investors and allegedly making a lot of money. Lastly, the category under services is also critical. Under it comes the FX signals, managed accounts, trade advisories, research and analysis reviews.
Some fly-by-night Fx operators take advantage of the excitement and ignorance of beginners and mislead them to believe in fake positive reviews. Remember that the forex market does not yet have a specific regulatory body. So, be wary of forex review sites by doing some background and reference checks. Go to sites where reviews are true and unbiased and coming from both the traders and the brokers' perspective. One website you can visit is that of Forex Justice whose mission is to minimize forex scammers.

The website of bestonlineforexbrokers.com came up with a list of the top online forex brokers around the world review. They were rated from more than 400 forex brokers listed in their website. The criteria for inclusion is an independent trading rating of 6.8 out of ten based on collected data from many forex traders around the world and other salient requirements.

Their top forex broker is Hot Forex based in Port Louis, Mauritius and founded in 2007. Its business model is ECN/STP with Metatrader 4 and Currenex as platform. You can open a minimum $25 account. Their minimum transaction is for 1000 units with a maximum leverage margin of 500:1. This forex broker has been doing online trading sinnce 2010. Its typical spread on majors is 0.3-2 pips. It has an 8.7% independent rating.  

Another Fx broker with an independent rating of 8.53% is Trading Point based in Limassol, Cyprus and founded in 2009. It began its online forex trading in 2009. Its business model is STP and Metatrader 4 as its platform.  Its transactions were regulated by FSA, BaFin and CySec. Its minimum account is $1 with a minimum transaction of 10 units. It has a maximum leverage of 500:1 with a typical spread on majors of 1-3 pips. Other forex brokers you may want to review are Delta Stock AD, Loyal  Forex Financial Ltd, Exness, Windsor Brokers Ltd, MB Trading, Ipipfix, Forex4you, Alpari (UK) Ltd., 4RunnerForex, Dukascopy Swiss Forex Bank, e-toro, Liteforex, Fastbrokers, Tadawul FX, ForexCT, FIG Solutions Ltd., IFC Markets Corp. and Avail Trading Corp. All of them have received high independent trading ratings.

Remember that the forex broker review is just one important aspect of a responsible currency trading review. You also need to look into the other reviews under the other categories listed in the beginning of this article.  If you follow these important guidelines, your percentage of success when you actually play the forex game will definitely be above average. 

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